Vermont Farmers Compete for Dwindling Federal Clean Water Funds

State officials say the end of major federal programs will make it harder for farmers to access financial assistance for water quality projects.

Published on Mar. 5, 2026

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Vermont's recently released 2025 clean water report documents the end of millions of federal dollars to keep the state's waterways clean. The American Rescue Plan Act and the Infrastructure Investment and Jobs Act brought over $197 million to Vermont for clean water projects, but that funding is now drying up. State officials say the competition to access the remaining limited dollars has become much steeper, making it more difficult for farmers to get the financial assistance they need to comply with water quality regulations and improve flood resilience.

Why it matters

Clean water is a critical issue in Vermont, where agriculture plays a major role in the economy. The loss of federal funding puts pressure on farmers to shoulder more of the costs for water quality improvements, which could impact their bottom lines and the state's overall environmental and economic resilience.

The details

The state recently lost over $10 million in Inflation Reduction Act grants meant to help farmers and forest landowners improve water quality and boost flood resilience. State officials say 187 landowners had applied for that assistance, and now they are competing for other limited funds through the U.S. Department of Agriculture. The state is appealing the rescinded Inflation Reduction Act grant, but in the meantime, remaining funds are stretched thin.

  • The American Rescue Plan Act brought $121 million to Vermont for clean water projects from 2022 to 2025.
  • The Infrastructure Investment and Jobs Act provided $76.5 million to Vermont's clean water state revolving fund, ending this year.
  • The Inflation Reduction Act grant of over $10 million was rescinded last fall instead of continuing through 2027 as originally planned.

The players

Emily Bird

An official with the Vermont Environmental Conservation Department.

Vermont farmers

Compete to secure limited federal funding for clean water projects as major grant programs end.

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What they’re saying

“The competition to access those limited dollars has become steeper and made it more difficult for farmers to access that financial assistance that they need to be able to get this work done.”

— Emily Bird, Vermont Environmental Conservation Department (WCAX)

“The loss of financial assistance for them will make meeting regulations more expensive for farmers...It really does have also an economic toll that it can take in terms of the production of the land and the ability to remain resilient to extreme weather.”

— Emily Bird, Vermont Environmental Conservation Department (WCAX)

What’s next

The state is appealing the rescinded Inflation Reduction Act grant, and officials say they are working to use remaining funds to advance clean water initiatives and support landowners.

The takeaway

The end of major federal clean water funding programs in Vermont will force farmers to compete for a shrinking pool of resources to comply with water quality regulations and build resilience against extreme weather. This could put economic pressure on the agricultural sector and the state's overall environmental health if alternative funding sources are not secured.